XRP News Today: XRP Futures Open Interest Dips 30% As Speculative Pressure Eases

XRP futures open interest has declined by 30% over the past month, dropping from $11 billion to $7.7 billion, while prices have retreated from a peak of $3.66. This reduction in open interest suggests that speculative activity in the derivatives market is cooling, potentially due to profit-taking or reduced conviction among leveraged traders. The drop mirrors a similar trend in Q1, when open interest fell from $8.5 billion to $3 billion amid a more than 50% decline in spot prices [1]. However, the current decline is less severe, raising the possibility that traders may begin accumulating XRP as open interest stabilizes within a new range.

Technically, XRP is showing a fair value gap between $2.33 and $2.65, which is being interpreted as a potential key demand zone should the decline in open interest continue. A moderation in open interest has historically preceded periods of price stabilization or accumulation, offering attractive entry points for buyers before subsequent rallies. Liquidation data also supports a more controlled sell-off, with only $22 million in longs liquidated on Monday and $56 million during a 6% pullback on August 14—figures that are lower than typical washouts in overheated markets [1].

Meanwhile, elevated whale inflows suggest that large investors are taking profits following XRP’s recent rally to $3.66. Data from CryptoQuant indicates that inflows to exchanges have increased across all value bands, particularly among whale cohorts holding 100,000 to 1 million XRP. Such patterns have historically signaled market tops, including in 2018 above $3, in 2021 near $1.90, and in 2023 around $0.90 [1]. The current surge in inflows may point to near-term selling pressure, potentially increasing the risk of a move toward the $2.6 support zone.

Despite short-term volatility, XRP’s broader uptrend remains intact. Analysts have highlighted that if the price holds the $2.33–$2.65 range amid declining open interest, it could be interpreted as a sign of accumulation rather than a breakdown to new lows. A strong defense of the $3 level would further reinforce bullish sentiment and potentially set the stage for a new push higher. Structurally, XRP remains in a healthier technical environment compared to previous cycles, with long-term price targets above $5 in 2025 still considered achievable.

The $2.50 level has emerged as a key psychological and structural threshold for XRP. It represents an area where previous resistance has been observed and may influence both retail and institutional behavior. Traders are monitoring whether this level can hold as support, with a breakout potentially signaling renewed bullish momentum. However, market participants are urged to remain cautious, as open interest alone does not guarantee a bullish outcome. A combination of price action, volume, and broader market conditions should be considered before making trading decisions [1].

Source: [1] https://cointelegraph.com/news/xrp-30percent-open-interest-drop-may-open-buy-zone-below-dollar2-50?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound